From the Jersey Journal:
Real-estate prices of condos along the Jersey City and Hoboken waterfronts are on the rise, with the number of sales up 36 percent from 2010, local real-estate agents say.
One condo in Jersey City saw its value shoot up nearly 40 percent since its last sale two years ago, while another condo just sold for the highest resale price ever in Hoboken’s Hudson Tea Building, the agents say.
As of Nov. 20, 420 condos near the Jersey City and Hoboken waterfronts were sold this year, at an average list price of $700,000, according to real-estate listing service Hudson County MLS. That’s up from 374 in 2011, when the average list price was $557,000.
Kristin Marie Ehrgott, a Realtor who lives and works out of Hoboken, attributes the rising value to “a perfect storm” of continued low interest rates, low inventory and the lure of lower real-estate prices than seen across the Hudson River.
“We’re seeing a lot of buyers getting priced out of Manhattan,” Ehrgott told The Jersey Journal. “For pure inventory and options, people started moving into New Jersey.”
Alky Danikas, an economic and finance professor at St. Peter’s University, said higher real-estate values in Jersey City and Hoboken may not hold any significance for the larger economy.
“To say what’s happening in Jersey City or Hoboken will apply to Union is not necessarily true,” Danikas said. “Or in West New York or in Bayonne.”
Real-estate values are “very, very local driven,” he said, adding that home values in areas of the country that were most hard hit by the 2008 economic collapse — south Florida, Nevada — have still not improved.
“Those recoveries haven’t happened yet,” Danikas said.